The COVID-19 crisis has changed the dynamics of many policies and operations on a global scale. Many businesses have had to make extremely tough emergency decisions with normal operations and employment. Since the outbreak, companies have had to act quickly to combat business in affected communities. Here are a few major business policy changes:
– The Joe Biden Administration will launch changes to the coronavirus aid program for small businesses Monday, February 22nd, to reach smaller, minority-owned firms and sole proprietors that were left behind in previous rounds of aid.
– For two weeks starting on Wednesday, February 24th at 9AM, the Small Business Administration will only accept applications for forgivable PPP loans from firms and businesses with fewer than 20 employees to ensure that they are not crowded out by larger businesses.
– Eligible businesses can apply for either a first or second draw PPP loan. To qualify for the second round of forgivable loans from the SBA, businesses must have spent or plan to spend all of their first loan and show they had a 25% or more drop in revenue in any quarter of 2020.
– On January 19th the program was relaunched with $284 billion in new funds from a coronavirus aid bill passed at the end of December. Additionally, a Biden administration official stated that about $150 billion of PPP money is still available.
– These new changes aim to make it easier for businesses with no employees, sole proprietors, independent contractors, and self-employed individuals (such as house cleaners and personal care providers) that did not qualify previously because of business cost deductions.
– The Biden Administration officials also stated that they will set aside $1 billion for businesses without employees that are located in low-and-moderate-income areas, which are 70% owned by women and people of color.
– The SBA is providing new guidance for legal US residents who are not citizens, such as green card holders, that allows them to be included in the program. They will also do away with rejections from a business owner who is behind on student loans from participating in the program.
– To apply, gather your tax documents. Including Schedule C (either from 2019 or 2020) and have them ready to submit on Wednesday, February 24th.